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 | Dairy Agribusiness »» Carta Leite |  |
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31/07/2009HOW MUCH CAN BE PAID FOR A MILK COW?The profit margin of dairy is small, so gain in productivity is needed to achieve good results.
In this study was considered the gross income x net revenues generated by a cow's milk.
Empirical example
We took as an example a milk cow in Brazil. She joins the production process in the artificial insemination or natural reproduction, which usually occurs on average at 17 months of age. The age range for more or less according to the level of technology in the property and the herd.
Nine months after the conception the cow starts the milk production, reaching its peak in 60 days, continuing to produce so decreasing by another eight months. The period of lactation considered is 300 days or ten months.
Considering a pregnant heifer (potential for 15 liters/day), whose market value today is approximately R$ 2.5 thousand, how many lactations would be required to pay this money?
In this case we're working with animals of average potential. Therefore, is important to say that the national average of milk production per cow is 3 to 5kg/day.
We adopt as reference Minas Gerais, the main state in milk production in the country. In June, the average amount paid to the producers in Minas Gerais was R$0.69/liter.
Doing a quick mind, a cow which produces, on average, 15 liters of milk per day generates R$10.35/day, or R$310.50 per month, or R$3,105.00 in 10 months, total period of lactation.
Real value
The calculation is related to the gross income, without costs.
We should consider the spending with the activity.
It was Considered the costs of production in 2008/2009, calculated by the National Supply Company (CONAB) for Minas Gerais (table1).
The estimated cost of CONAB refers to a property with average technology, where there is a food supplementation of cows in the periods of low availability of pasture, however the property doesn’t make use of artificial insemination.
The production cost per liter of milk in Ibiá - MG is R$0.64. Considering the value received by the milk in July of 2009, R$0.69 per liter, we have a margin of R$0.05 per liter of milk.
HOW MUCH LACTATION?
Taking into consideration only the profits, the revenues obtained by lactation (300 days) would be R$225.00/cow (with average production of 15 liters/day). Note table 2.
The residence time of a cow in production is quite varied, but generally, it stay in the herd for eight or fewer lactations.
Thus, this animal generates a net revenue of R$1.8 thousand during their productive life (table 3).
What left is not enough to pay the amount invested. This would need 11 lactations.
In general, from the eighth lactating dairy cows can no longer be economically viable for the property, because the fall in production it is difficult to bear the operating expenses, causing damage to the producer. This situation is more relevant to high animal productivity.
FINAL
Several factors must be taken into account.
Several items of cost of production can be reduced, enhanced, in order to achieve better results in the activity. Spending on food is the most part of the costs, so a good feed management is essential.
Another point that we do not consider in this analysis were the sales of calves produced by the cow and the sale of the cow itself (for slaughter or for another property).
The calves can be sold or composing the flock of property.
Without the sale of calves and the cow, milk production in itself should be the beacons, the reference price for the purchase of a dairy cow. Considering this factor the gross revenue should be discarded and think about the net revenues. This simple account, avoids a series of bad business.
Lygia Maria Pimentel – Veterinarian
Rafael Ribeiro de Lima Filho – Animal scientist
Scot Consultoria
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